Lucid Group (NASDAQ: LCID) has announced its intention to sell $1.75B aggregate principal amount of convertible senior notes due 2026 in a private offering. The notes will mature on December 15, 2026. Initial purchasers of the notes may be provided an option to purchase an additional $262.5M (up to) worth of notes.
The notes will be redeemable, for cash at Lucid’s option at any time, and from time to time, on or after December 20, 2024 and on or before the 31st scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Lucid’s common stock exceeds 130% of the conversion price for a specified period of time and certain liquidity conditions are satisfied.
Lucid intends to allocate an amount equal to the net proceeds from the notes to finance or refinance, in whole or in part, one or more new or existing “Eligible Green Investments,” including the development, manufacture, or distribution of products, key components, and machinery related to electric vehicles or energy storage systems, as well as investments and expenditures related to renewable energy, energy efficiency, and sustainable water and waste management. Pending such allocation, Lucid intends to use the net proceeds of the offering for business expansion and general corporate purposes, which may include investing in our manufacturing capabilities, expanding and improving operations such as our retail and service network, investing in research and development, and supporting other potential growth opportunities.
The stock is currently down more than 6%, closing at $42 (at the time of writing during the aftermarket session).
The stock took a big hit earlier this week when Lucid received subpoena from the SEC before recovering back to the mid 40s.